First home buyers – What if you don’t have enough deposits for a property?
In general, you need at least a 5% deposit and stamp duty and conveyancing costs before you can buy a home.
Some lenders do offer no deposit home loans, but the rates can be quite high.
As a first home buyer, some of the ways you can make up your 5% deposit include:
- Gifting from family.
- If you are a first home buyer, you don’t need to pay stamp duty in most states, and you might be eligible for a First Home Loan Deposit Scheme (FHLDS) with the Commonwealth government, which means you don’t need to pay for Lenders Mortgage Insurance (LMI).
- Gap funding – some lenders will accept gap funding.
- First Home Super Saver scheme – you can save your deposit inside your super with before tax contributions.
- Asking your parents to be a guarantor.